Mobile TeleSystems (MTS) is the largest mobile phone operator in Russia and in the CIS (Commonwealth of Independent States – former Soviet Republics). The company just launched the first phase of its 3G network in Moscow. It will offer data download speeds of up to 3.6 Mbit/s using the HSPA technology. MTS’ goal is to provide mobile broadband in the CIS, which has relatively low fixed-line penetration, and is lacking in infrastructure.

MTS and its subsidiaries provide service for more than 93 million subscribers. They are licensed to provide GSM service in Russia, Armenia, Belarus, Turkmenistan, Ukraine and Uzbekistan, where the combined population is over 230 million.

Their first full commercial HSPA-enabled network appeared in St. Petersburg in May 2008. By the end of last year, they had added 15 other cities, and 10 more have come on line in 2009. The company is currently operating 3G networks in Russia, Uzbekistan and Armenia, and has a proprietary CDMA-450 network in Ukraine which offers high-speed data access.

MTS received permission to set up 3G networks in the Moscow metro. They are looking to add 35 of the largest businesses and shopping centers in Moscow this year, and to launch indoor 3G networks in corporate offices.

MTS has grown since its inception in 1993 by gobbling up smaller, telecommunications companies in the CIS and Central Asia. MTS, with revenues of $10.2 billion, is traded on the NYSE as MBT. Their quarterly report notes that, similar to companies the world over, they are closely watching revenues. They are seeing less roaming revenue due to less travel by MTS Subscribers, lower long distance due to decreased business activity, and migration to lower-value tariffs by customers tightening their belts.